KTM workers left unpaid in December due to insolvency crisis

Photo: Gold & Goose / Red Bull Content Pool

15. 12. 2024 21:42 CET
3 min

KTM workers left unpaid in December due to insolvency crisis

Eliška Ryšánková
News.GP journalist who’s all about the thrilling worlds of MotoGP and Formula 1.

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KTM employees are facing a harsh holiday season as the Austrian manufacturer fails to deliver promised December salaries. Reports from the Upper Austrian Chamber of Labour reveal that wages will be deferred until 2025, with payments expected to come from the insolvency compensation fund. Unions and labour representatives are calling for swift action to ensure workers receive their outstanding claims.

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The KTM workers will not receive their December salaries, according to reports from the Upper Austrian Chamber of Labour.

The Austrian manufacturer had assured its employees of a 90 percent advance in December pay but has now backed out of that commitment. Instead, the salaries and wages for December will be deferred until 2025, with payments expected to come from the insolvency compensation fund.

“Before Christmas, KTM planned to transfer 90 percent of December wages and salaries to its employees,” stated the Upper Austrian Chamber of Labour. “This assurance had been given to employees, but it will not happen now.

“The insolvent company from Mattighofen is apparently unable to fulfill its promise of payment.”

Andreas Stangl, President of the Upper Austrian Chamber of Labour, expressed his frustration: “November wages, salaries, and the Christmas bonus have already gone unpaid. Now, just before Christmas, employees are hit with this devastating news.

“There is no longer any trustworthiness in KTM's management. As the Chamber of Labour, we will do everything in our power to ensure that employees receive their outstanding claims from the insolvency remuneration fund as quickly as possible.”

Another statement from Reinhold Binder and Barbara Tieber, chairpersons of the PRO-GE and GPA unions respectively, criticized the company’s actions: “The failure to deliver promised wages and salaries before Christmas is a severe blow to affected employees, akin to a slap in the face.

“They are now bearing the consequences of what appears to be poor management decisions.

“It is essential to investigate how such a dire situation developed and who is responsible. Meanwhile, we are committed to ensuring that employees swiftly receive their entitlements through the insolvency remuneration fund and will support them throughout these challenging times.”

The unions also emphasized the significance of the insolvency remuneration fund, financed through non-wage labor costs, in protecting workers in such crises.

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